Portuguese consumers will see significantly smaller fuel price reductions than initially anticipated after the government adjusted a petroleum product tax discount.
Initial forecasts suggested a drop of approximately $0.065 per liter for diesel and about $0.032 per liter for gasoline. However, the government’s decision to reduce the discount on the Petroleum Products Tax (ISP) has curtailed these expected savings.
As a result of the tax adjustments, diesel prices are now projected to fall by only around $0.043 per liter. Gasoline prices are expected to see an even more modest reduction, dropping by roughly $0.011 per liter.
The revised tax rates were published on November 28 in the official government gazette. The ISP rate for gasoline is now set at €497.52 per 1,000 liters, or approximately $537.32 per 1,000 liters. The diesel rate increased to €361.60 per 1,000 liters, equivalent to about $390.53 per 1,000 liters. These figures include a consignment for road services.
The practical effect of the tax change is an increase of approximately $0.017 per liter for gasoline and $0.026 per liter for diesel before value-added tax.
Final fuel prices may still fluctuate depending on the specific region and individual fueling station.